now this is just me but I personally liked EBF 3′s cut scenes mostly because you saw the gang with the items they had equipped when you fought the boss of the that specific region, other than that I like the cute scrap-book feel like Yoshi 64 had for its story book telling

I actually love the style that you are doing here, it certainly feels more like those children books with tales like these.
Although, I don’t really like the fact that Matt has that little white thing on his pupil, I mean, it’s fine for that green bush and for NoLegs, but for matt, nah, doesn’t looks good.
Here’s a little edit if you want to compare:http://oi66.tinypic.com/2rnwr54.jpg

What I meant by “animated” by not bobbing at all. Maybe walking along a path, like the one in the pic. (I can imagine Matt and NoLegs walking down the path, confronting the Monolith.) Or maybe like using their weapons or something like that? Various animations, maybe.